Is the US Stimulus check going to raise the price for bitcoin? - page 2.

Gozie51

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Quote from: KonstantinosM on April 22, 2020, 08:56:07 PM

Many people need the money desperately, many however have kept their jobs, and will get a double boost of cash from tax returns + Stimulus check.

I think this will have a positive effect on the bitcoin price. Thoughts?

Sorry if this has been discussed before.

I think it has been discussed before or close to that.
The stimulus check will help the citizens no doubt and that will help to take pressure away from the economy making it look like a bit normal which can encourage online investment since people are at home and social distancing. One of the current online investment at the moment is cryptocurrency, therefore investment in bitcoin can continue. At the main time, the price for btc is $7,551 showing increase in price.

The Sceptical Chymist

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Quote from: exstasie on April 22, 2020, 10:46:17 PM

Obviously some (tiny) percentage of that money will trickle into BTC.

I don't know what your definition of "tiny" is, but I'm pretty sure I agree with your assessment. No doubt at least some of the simulus checks are being put toward bitcoin or some other form of crypto. But as I've said in another thread about this, the extent to which the influx of money ends up affecting bitcoin's price depends on a number of factors, including how much money was used to buy, how many selling orders were on exchanges like Coinbase, and probably a few I'm unable to think of at the moment.

Considering that all the money has been distributed already, I wouldn't expect a massive jump in the price of bitcoin at this point. There may have been some "stimulus buying" that was able to keep bitcoin above $7k, but if market sentiment turns negative that might not last for long. It'll be very interesting indeed to see where bitcoin is, say, a year from now when presumably the outbreak will have blown over and things have gotten back to a semblance of normal.

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Quote from: KonstantinosM on April 22, 2020, 08:56:07 PM

Many people need the money desperately, many however have kept their jobs, and will get a double boost of cash from tax returns + Stimulus check.
I think this will have a positive effect on the bitcoin price. Thoughts?

It should definitely reduce the negative effect caused by economic recession on the Bitcoin price that. That is the main plan of government subventions. To keep pre covid-19 state.

KonstantinosM

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Quote from: Reid on April 23, 2020, 01:36:45 AM

Yeah, I think it had been discussed before.

https://bitcointalksearch.org/topic/stimulus-checks-perfect-storm-for-massive-crypto-bull-run-5241919

https://bitcointalksearch.org/topic/bitcoin-has-seen-a-major-boost-amid-dollar-crisis-5238281

Yes, some may use it to by bitcoin but some may not.
As for my own opinion, I would rather keep it for now.
You just don't know what could happen. Better to have some cash in case of emergencies.
The percentage might really be low for those who are thinking about risking it.

I should have looked at more than the first page of topics, that was pretty lazy of me.

$1,200 is a lot if you don't lose your job, and people are also going to get money back from their tax returns as well. I think it's only natural some of that money will go into bitcoin.

Than again, $1,200 is almost nothing if you're starting at 0 savings and you want to be responsible and build 6-8 months worth of savings. Let's say you want to set aside 16,000 in case you lose your job so you have wide margins to find another one, 1,200 is just a drop in the bucket there.

Since I was late to the party I'm going to ask that we use one of the previous threads, I don't want to contribute to spam. If I can, I'll lock this one. I can't decide which of the two other threads is the one to post in yet, but they're both on the same topic.

sheenshane

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Yeah, I saw this topic has been discussed before and the link was showed above.

This stimulus check from the government may be used to purchase bitcoin but for me, there will be no impact on the price, or if there is it will be too little that you can't even notice it. Due to this pandemic, people may prioritize this stimulus check to be used for necessities and emergencies. I myself would rather keep it in the meantime as it can be used for any emergency during this pandemic in order to survive. If I will spend it to purchase bitcoin it is my option but I may not expect too much on this as my investment as of now.

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Quote from: adaseb on April 23, 2020, 12:28:21 AM

Well there are actually "some" that are buying bitcoin with their stimulus check, the coinbase ceo twitted this a few days ago,

https://twitter.com/brian_armstrong/status/1250907110730170370

Basically he posted a chart which shows deposits in an amount similar to $1200 spiked about 4x during the last few days. So its either a coincidence or people are investing their money in crypto. Kind of like Costco had big screen TVs at exactly $1200 last week.

Well, it's not really evidence of buying, those are just deposits of the exact amount of stimulus cheques. Binance US also noted the same spike in $1200 transactions, but yeah, hard to believe that people are depositing stimulus cheques there NOT to buy Bitcoin.

Imagine now if that 400B monthly stimulus sees even 1% go into crypto. 4B a month for the next six months if the EMP Act gets greenlighted.

Reid

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Yeah, I think it had been discussed before.

https://bitcointalksearch.org/topic/stimulus-checks-perfect-storm-for-massive-crypto-bull-run-5241919

https://bitcointalksearch.org/topic/bitcoin-has-seen-a-major-boost-amid-dollar-crisis-5238281

Yes, some may use it to by bitcoin but some may not.
As for my own opinion, I would rather keep it for now.
You just don't know what could happen. Better to have some cash in case of emergencies.
The percentage might really be low for those who are thinking about risking it.

pooya87

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i think it depends on what bitcoin price is going to do after people received the "free" money.

right now the fear is still dominating the market even though price has gone up ~85% over the past couple of weeks. many investors are still unsure whether the "rally" is going to start soon or it would take longer so they are mostly staying on the sidelines waiting for the rising signal to jump in.
so if the price started showing positive signs, i am sure that it would attract a lot more investors than any other time because right now there are a huge number of investors that are losing money in all other markets and like somewhere better to put their money.

adaseb

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Well there are actually "some" that are buying bitcoin with their stimulus check, the coinbase ceo twitted this a few days ago,

https://twitter.com/brian_armstrong/status/1250907110730170370

Basically he posted a chart which shows deposits in an amount similar to $1200 spiked about 4x during the last few days. So its either a coincidence or people are investing their money in crypto. Kind of like Costco had big screen TVs at exactly $1200 last week.

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Quote from: KonstantinosM on April 22, 2020, 08:56:07 PM

Many people need the money desperately, many however have kept their jobs, and will get a double boost of cash from tax returns + Stimulus check.

I think this will have a positive effect on the bitcoin price. Thoughts?

Sorry if this has been discussed before.

Well it can only have a net positive effect on price. Obviously some (tiny) percentage of that money will trickle into BTC. Anecdotally I've seen a handful of people claim to have bought BTC with it. Having an extra $1,200 cushion in the bank might also be keeping some holders from liquidating coins, for the time being.

So it should increase demand and reduce supply. I don't know by how much, or how meaningful this is for prices though. The effect is probably not very significant. I don't think the stimulus money outweighs the negative effects of the recession.

KonstantinosM

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Many people need the money desperately, many however have kept their jobs, and will get a double boost of cash from tax returns + Stimulus check.

I think this will have a positive effect on the bitcoin price. Thoughts?

Sorry if this has been discussed before.

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